. ul. iv. SEMBILAN Sdn Bhd entered into an agreement with the Johore State Government for the allocation of 1,000 acres of virgin jungle. The capital sum payable by SEMBILAN Sdn Bhd for the land was RM100 per acre. This includes an element for the right to extract timber. SEMBILAN Sdn Bhd is required to develop the land as an oil palm plantation within 3 years and to clear the land by felling and logging the stand timber. SEMBILAN Sdn Bhd received proceeds from the sale of the timber felled. (10 marks) Todi Sdn Bhd carries on a business of wholesalers and retailers of imported liquor. The company has also been involved in the sale of locally distilled liquor, the sale of which is prohibited under Malaysian law. The company's financial statement for the year ended 31 December 2020 showed a total turnover from the sale of liquor of RM25 million which includes RM3.2 million derived from the sale of locally distilled liquor. The company contends that the profit from the sale of the local liquor is not liable to income tax since it is derived from illegal activity. Furthermore, the company had previously been convicted of selling this liquor and had paid a fine of RM50,000. . ul. iv. SEMBILAN Sdn Bhd entered into an agreement with the Johore State Government for the allocation of 1,000 acres of virgin jungle. The capital sum payable by SEMBILAN Sdn Bhd for the land was RM100 per acre. This includes an element for the right to extract timber. SEMBILAN Sdn Bhd is required to develop the land as an oil palm plantation within 3 years and to clear the land by felling and logging the stand timber. SEMBILAN Sdn Bhd received proceeds from the sale of the timber felled. (10 marks) Todi Sdn Bhd carries on a business of wholesalers and retailers of imported liquor. The company has also been involved in the sale of locally distilled liquor, the sale of which is prohibited under Malaysian law. The company's financial statement for the year ended 31 December 2020 showed a total turnover from the sale of liquor of RM25 million which includes RM3.2 million derived from the sale of locally distilled liquor. The company contends that the profit from the sale of the local liquor is not liable to income tax since it is derived from illegal activity. Furthermore, the company had previously been convicted of selling this liquor and had paid a fine of RM50,000